If you sell your home and there is no mortgage you will receive cash rather or not your buyer paid cash. (Cash buyers will usually offer less than non cash buyers so you might just sell to a well qualified buyer). You then write cash offers to purchase one or more homes. You can also sell contingent upon buying and make the escrows close concurrently. Hope that helps. You can email me directly at firstname.lastname@example.org if you have additional questions or would like an estimate of what your home is worth.
You are not required to file taxes if your income is under a certain limit. Though in the year you sell the house you will need o file taxes. There is an owner occupied exemption for $250,000 for a single person and $500,000 for a married couple. That has nothing to do with how much cash is distributed, rather it is the price you paid for the house minus the price you sell the house for.
There are some strategies you can use to avoid additional taxes.
Also remember the tax base on the old house is probably much lower than the new house, if you are over 55 you may be able to transfer the property tax to the new house.
Let's say you paid $300,000 for a house in 1998 and now are selling it for $500,000. If it is an owner occupied house and you are a single person, you get the $250,000 exception and get all $500,000 tax free.
I I understand the question, you are paying cash for the new house. The transaction will be reported to the IRS.
If the new house is $400,000 then the property tax rate will go up from $3000 to $4000 or an increase of $1000 a year. If you are over 55 you can avoid that by filing the proper paperwork at the county recorder's office.
I am a bit more than just a lender, I do full on mortgage planning strategies and am a real estate broker.
I am more than happy to help people who call, for no charge or obligation. Please verify with your licensed legal and tax advisors
If you are looking in Fullerton, specifically 92831 - don't expect to find many if any foreclosures. We have pretty much gone through the defaults in that zip code and I would not expect many new distressed listings to come on the market.... more